eBay's billion-dollar bet on secondhand

eBay acquired secondhand marketplace Depop for $1.4 billion in July and is now capitalizing on Gen Z's appetite for thrifting clothes.

Nine billion in fashion sales in one year

eBay and Depop generated $9 billion in U.S. fashion sales volume over the past 12 months, up in the mid-20% range from a year earlier.

Nearly 90 percent of Depop buyers are under 34

Depop's U.S. sales volume more than doubled year-over-year in Q3 as younger shoppers turn to secondhand. Nearly 90% of Depop's 7 million active buyers were under 34.

Sustainability and affordability drive the shift

eBay CEO Jamie Iannone said Gen Z's sustainability focus drives secondhand buying. 46% of consumers ages 18 to 29 buy used goods at least every other week.

“The younger generation specifically is much more focused on sustainability and driving recommerce.”

Budget management matters for Gen Z shoppers

76% of Gen Zers say secondhand helps them manage budgets, compared to 70% of overall consumers. 60% of U.S. consumers ages 18 to 29 expect to increase secondhand purchases next year.

eBay integrating Depop for stronger growth

Depop reached 11 million active buyers over 12 months in Q3, up from 9 million. eBay is directing more marketing resources to Depop and lowering its shipping costs.

“We are managing eBay and Depop as a portfolio, preserving each brand's distinct experience and allocating investment toward opportunities that generate the strongest long-term returns for the combined company.”